PEZA or BOI?
Two main tracks, with different thresholds and rules
| PEZA Economic Zone | BOI Board of Investments | |
|---|---|---|
| Best for | Export-oriented: manufacturing / IT-BPO / logistics | Priority industries for export + domestic sales |
| Hard requirement | Project must be located within a PEZA zone and be primarily export-oriented | Project must be listed in the Strategic Investment Priority Plan (SIPP) |
| Core incentives | Income Tax Holiday + zero-rated VAT + duty-free importation | Income Tax Holiday + import duty relief on equipment |
| Must locate in a zone | Yes | No |
Incentives you can obtain (project-dependent)
CREATE / CREATE MORE framework
- ✓Income Tax Holiday (ITH): 4–7 years, longer for strategic / underdeveloped areas
- ✓Afterwards, an optional 5% Special Corporate Income Tax (SCIT): computed on gross income, replacing almost all national and local taxes
- ✓Or opt for the Enhanced Deductions Regime (EDR): +100% on R&D, +100% on training, additional deductions on local procurement, etc.
- ✓Imported machinery / equipment / raw materials: duty relief, zero-rated VAT
- ✓New CREATE MORE policy: allows 50% work-from-home without losing incentives; domestic-market types can enjoy a 20% preferential tax rate
Application process
- Assess the project: export share, industry, and site to determine whether to go PEZA or BOI
- Prepare documents: project study / feasibility, company registration documents, investment plan
- Register with PEZA / BOI as a Registered Business Enterprise (RBE)
- Obtain incentive eligibility, and after the ITH, be taxed under SCIT or EDR
- File compliance annually and maintain incentive eligibility
An honest note
Tax incentives vary by project and are at the agency's discretion, and BOI approval has tightened in recent years — we first help you calculate which track is most advantageous and whether you can qualify, then handle the registration and annual compliance on your behalf, without overpromising a 'guaranteed grant.'